Question

Ms. Shriya invested some amount buying $₹150$ shares of a company which pays dividend at the rate of $8\%$ per annum. If she gets back $10\%$ per annum on his investment, then the value at which she bought the share, is

• A. $₹100$
• B. $₹120$
• C. $₹180$
• D. $₹210$

Answer 1

The correct option is B

$₹120$

Find the market value of the share

Given, Face value$=₹150$

Dividend%$=8\%$

Rate of return%$=10\%$

Using the formula, $\mathit{F}\mathit{a}\mathit{c}\mathit{e}\mathbf{}\mathit{v}\mathit{a}\mathit{l}\mathit{u}\mathit{e}\mathbf{\times }\mathit{D}\mathit{i}\mathit{v}\mathit{i}\mathit{d}\mathit{e}\mathit{n}\mathit{d}\mathbf{\%}\mathbf{=}\mathbf{}\mathit{M}\mathit{a}\mathit{r}\mathit{k}\mathit{e}\mathit{t}\mathbf{}\mathit{v}\mathit{a}\mathit{l}\mathit{u}\mathit{e}\mathbf{\times }\mathit{R}\mathit{a}\mathit{t}\mathit{e}\mathbf{}\mathit{o}\mathit{f}\mathbf{}\mathit{r}\mathit{e}\mathit{t}\mathit{u}\mathit{r}\mathit{n}\mathbf{\%}$

$\mathit{M}\mathit{a}\mathit{r}\mathit{k}\mathit{e}\mathit{t}\mathbf{}\mathit{v}\mathit{a}\mathit{l}\mathit{u}\mathit{e}\mathbf{=}\frac{\mathit{F}\mathit{a}\mathit{c}\mathit{e}\mathit{}\mathit{v}\mathit{a}\mathit{l}\mathit{u}\mathit{e}\mathit{\times }\mathit{D}\mathit{i}\mathit{v}\mathit{i}\mathit{d}\mathit{e}\mathit{n}\mathit{d}\mathit{\%}}{\mathit{R}\mathit{a}\mathit{t}\mathit{e}\mathit{}\mathit{o}\mathit{f}\mathit{}\mathit{r}\mathit{e}\mathit{t}\mathit{u}\mathit{r}\mathit{n}\mathit{\%}}\mathbf{}$

$$\begin{gathered} =\frac{150\times 8}{10} \\ =₹120 \end{gathered}$$

Hence, The value at which Ms. Shriya bought the share is $\mathbf{₹}\mathbf{120}$ . Therefore, option B is correct.